Life After Bankruptcy
A bankruptcy is often viewed as a loss, even though the person filing is gaining a discharge of debt. Many people go through the five stages of grief and need support as they emerge from the bankruptcy process.
Our society has put such a negative spin on bankruptcy that individuals who are forced for no fault of their own to file bankruptcy may be burdened with failure and self-esteem issues. Recovery from bankruptcy has been achieved successfully by many.
The fear passes, and so does the credit score, and credit rebuilt on a foundation of the absence of debt is strong.
We have seen people receive credit cards immediately following bankruptcy, refinance houses within on year of filing, preserve certain credit cards through a bankruptcy, continue in business following a bankruptcy (this is not unusual) and people who found that the relief of stress has saved their marriage.
All in all, bankruptcy is unfortunate, but the stigma of bankruptcy (real or imagined) is by far outweighed by the benefit of the disappearance of debt and all of its horrors.